TomTom shares rise 9% after European Union decision

- Advertisement -


Amsterdam, Nov 17 (Businesshala) – Shares of Dutch navigation and mapping company TomTom (TOM2.AS) closed 9.3% higher on Wednesday, after the European Union published rules specifying that cars must include a technology that The company should start from 2022.

- Advertisement -

TomTom works with carmakers to provide technology that helps drivers adhere to speed limits, called “intelligent speed assist.”

- Advertisement -

publication in Official Journal of the European Union Specified that new car models should use the technology starting in July 2022, and that all cars sold should have it by 2024.

Chief executive Harold Godijn was due to meet with investors at a conference during the day, although it was unclear whether he discussed the potential financial benefits to the company.

- Advertisement -

A TomTom spokesperson could not immediately comment.

Sebastian Marland, equity research analyst at AFS Group, said he believed the news was the reason for the stock’s rally.

“This creates a momentous opportunity for TomTom as it provides the technology needed to ‘add-ons’ cars,” he said.

However, “from 2024 onwards, all cars in the EU will have to install it, making TomTom’s technology redundant in the long term.”

The stock closed at 7.92 euros in Amsterdam.

Reporting by Danilo Masoni and Toby Stirling in Amsterdam Editing by Matthew Lewis

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox